K Line has confirmed it is the Japanese shipowner involved in a deal that will see two new LNG carriers chartered to Malaysia's Petronas.
The company said it had signed its first long-term charter agreement involving newbuildings with the energy company.
K Line has executed shipbuilding contracts for the 79,960-cbm dual-fuel ships at Hudong-Zhonghua Shipbuilding in China, the Tokyo-listed shipping giant added.
The carriers will transport gas from Bintulu in Malaysia to Shenergy Group in China once they are delivered in the second quarter of 2022.
K Line has a 12-year charter lined up, with a 12-year extension option.
The company said the deal will allow K Line to further expand its "stable earning structure from long-term contract and contribute to stable supply of energy".
The newbuildings will have a speed of 17.5 knots.
TradeWinds reported last month that K Line was poised to win the business.
Sources said the owner had been selected ahead of domestic rivals.
Brokers had suggested the winning shipowner could acquire a 30% stake in the ships. K Line did not specify its ownership.
In January, the Chinese shipbuilder said Petronas had ordered the duo, which are priced at about $120m each.
Supply contract signed
At the same time, Petronas said it had signed a heads of agreement to supply 1.5 million tonnes per annum of LNG to Shenergy Group over a 12-year period starting in 2022. Cargoes will be shipped into China's Wuhaogou LNG import terminal.
The Malaysian state energy giant said the deal with Shenergy Group involved a shipping collaboration to construct and charter midsize vessels.
Earlier, sources had said the two newbuildings may be turned over to Petronas’ shipping arm, MISC Berhad, which would take a controlling 50% stake in the ships, with Shenergy netting a 20% stake.
In recent years, K Line has been quiet on LNG business compared with compatriots MOL and NYK Line, although it has stepped up its LNG bunkering business.
The midsize LNG carriers contracted by Petronas are something of a rarity in the LNG fleet, which mainly comprises vessels of 140,000 cbm or larger.
In 2018, Chinese trader Jovo Group contracted two 80,000-cbm LNG carriers at Jiangnan Shipyard in China for delivery in 2021. TradeWinds understands these were to be used for a similar type of business with Petronas.
However, Jovo is pursuing a stock listing and has been unable to move ahead with the order.
